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Transportation

New York City Just Voted To Cap Uber and Lyft Vehicles and Require Drivers To Be Paid a Minimum Wage (cnbc.com) 247

New York City Council passed regulations on ride-hail companies on Wednesday, capping the number of vehicles on the road for one year and requiring that drivers to be paid a minimum wage. From a report: Council Speaker Corey Johnson said earlier that the regulations are intended to protect drivers, fairly regulate the industry and reduce congestion. The year-long cap on new licenses for ride-hailing vehicles will take place while the Taxi and Limousine Commission (TLC) studies the effects of ride-hail service in the city. The cap would not apply to new wheelchair-accessible vehicles or new vehicles serving an area demonstrating need in a way that does not increase congestion. App-based ride services account for 80,000 vehicles in New York City, and provide 17 million rides per month, according to a study by The New School for the TLC. The surge in ridership coincided with increased resident frustration with the local subway system. With the move on Wednesday, New York City, the largest American market for Uber, has become the first major American city to restrict the number of ride-hail vehicles and to establish pay rules for drivers. In a statement issued moments ago, New York Mayor Bill de Blasio said," Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock. The unchecked growth of app-based for-hire vehicle companies has demanded action -- and now we have it."
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New York City Just Voted To Cap Uber and Lyft Vehicles and Require Drivers To Be Paid a Minimum Wage

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  • Sounds fair (Score:5, Interesting)

    by WillAffleckUW ( 858324 ) on Wednesday August 08, 2018 @04:48PM (#57093304) Homepage Journal

    According to statistics, a reasonable minimum wage adjusted from 1971 for NYC would be $40 an hour.

    • by Joe_Dragon ( 2206452 ) on Wednesday August 08, 2018 @05:02PM (#57093368)

      54.5 cents per mile + NY MINWAGE + full insurance will hurt them big time.

      • by bobbied ( 2522392 ) on Wednesday August 08, 2018 @05:46PM (#57093612)

        54.5 cents per mile + NY MINWAGE + full insurance will hurt them big time.

        Which is why the Taxi Companies pushed so hard for this.

        • Average traffic speed in NYC is say 15 mph -- I'm being very generous by averaging Manhattan and less-crowded parts of the boroughs here.

          $13/hr / 15 mph = 86 cents/mile
          86 cents + 54 cents = $1.40 per mile.
          Add insurance and you're probably close to $2 per mile.

          Once you add Uber's profit, their charges will need to be pretty close to the $2.50 per mile that "regular" cabs charge.

        • by mjwx ( 966435 )

          54.5 cents per mile + NY MINWAGE + full insurance will hurt them big time.

          Which is why the Taxi Companies pushed so hard for this.

          How dare they push for a level playing field... The nerve.

    • $40/hr ~= $75-80 grand a year at reasonable working hours. This actually is more than the bare mnimum to live, especially if you're living outside of "trendy" areas like Manhattan below 100th St or close-in parts of Brooklyn and Queens. I'd say minimum of $15/hr is about right.
      • Let's compromise on $45/hour min wage then.

        • Let's just make it a $100,000/hour minimum wage, then people wouldn't have to work more than a few hours a year if they don't want, right? If we aren't going to worry about the other economic consequences, we can just set it to as high as we want and legislate everything into magical free wealth world, right?

          • Once Uber/Lyft/Google and others manage to make self-driving taxis, cars, buses, etc... a reality, And once Amazon manages to make shopping from your couch as convenient time-wise thanks to automated same day delivery... what you suggest will become almost critical.

            We hear a lot about self driving and automation of things we encounter in daily life. But consider areas like construction where 3d printed printed foundations and houses that are manufactured to be clicked together with a self-driving truck moun
    • Re:Sounds fair (Score:5, Insightful)

      by Archangel Michael ( 180766 ) on Wednesday August 08, 2018 @05:56PM (#57093654) Journal

      Why pick 1971? Why not pick 1938 when Min wage was first enacted into national law. That wage was $.25 / hr. Adjusted for Inflation that is just under $5 / hr. Thus proving that cherry picking is fun.

      • Re: (Score:3, Insightful)

        by Anonymous Coward

        Whatever way you look at it - wage has not kept pace over the years with how much more productive we've become.

        https://media.newyorker.com/photos/590952681c7a8e33fb38a80d/master/w_774,c_limit/minimum-wage-chart-i.jpg

        • What did you expect to happen when we run the printing presses as much as we do and the supply of money increases at a disproportionately higher rate?

          Also, greater productivity makes it less expensive to live. Consider how few people work in agriculture compared to 100 years ago, or even further back. We made food so cheap and accessible that obesity is a bigger problem than malnutrition.

          Setting the minimum wage higher will not help anyone. You cannot afford to employ a person for more than their labo
          • Supply and demand.

            If a person costs too much, you have to use less people
            If you use less people, there are less jobs
            If there are less jobs, there is less money to be redistributed
            If there is less money to be redistributed, there are fewer people buying your stuff or using your service.
            If you raise your prices to compensate for lower demand, to increase wages, you'll lose more customers

            It's a vicious circle. The answer is... we need something like basic income... but instead of basic income, we need a govern
            • And then the world's wealth would very quickly all flow to countries like China that would still have sane economic and labor policies. Then the countries that implemented basic income schemes would have no money to pay out the basic income - either that or their currency would become worthless.

      • by Nethead ( 1563 )

        If you think cherry picking is fun, I have some Eastern Washington orchardists that would like to chat with you.

      • probably because around the late 60's/early 70's minimum wage was at its peak and has declined in inflation adjusted figures since then.
    • That assumes the 1971 minimum wage was reasonable. Do you have any reason to believe that?

  • by xack ( 5304745 ) on Wednesday August 08, 2018 @04:55PM (#57093338)
    So the number of vehicles will still increase. Plus Uber will add more “administrative” fees to cover the wage increase.
    • by Actually, I do RTFA ( 1058596 ) on Wednesday August 08, 2018 @04:59PM (#57093348)

      So, what your saying is that Uber riders have to pay more, and my taxes no longer subsidize their drivers (through food stamps, etc.)? The free market gets to work?

      • by CanHasDIY ( 1672858 ) on Wednesday August 08, 2018 @05:23PM (#57093490) Homepage Journal

        So, what your saying is that Uber riders have to pay more, and my taxes no longer subsidize their drivers (through food stamps, etc.)? The free market gets to work?

        My kingdom for a mod point.

      • Re: (Score:2, Flamebait)

        by bobbied ( 2522392 )

        So, what your saying is that Uber riders have to pay more, and my taxes no longer subsidize their drivers (through food stamps, etc.)? The free market gets to work?

        How cute, you think that "minimum wage" will get Uber drivers off food stamps and Medicaid... Maybe a few will, but I doubt it will be many.

        Just a guess, but I'm thinking that the bulk of Uber's drivers are just doing side hustles anyway. It's a way to increase cash flow in your spare time using your car. I'm also going to guess that very few of their drivers actually live in NYC, but end up driving there for fares because that's where the demand is and thus where you go to make money fastest. Finally, I

        • Really. It's a great city - and I say that as a Brit. Don't let your prejudices deter you!

          • Really. It's a great city - and I say that as a Brit. Don't let your prejudices deter you!

            It's not a prejudice in this case but preference. I was raised in the country and don't like cities or suburban spaces much. I'd rather spend my free time away from large groups of people and in the fresh air. So I don't feel the pull to "visit" the big city, or any city, but feel pulled away from the hassles you have to put up with in large groups of people. Give me a secluded beach, a hiking trail, a mountain side, or drive though the country.

            BTW, I visited Manchester once. Found a love for English t

        • What it may do is make some of them realise how badly they are being exploited since it seems everyone I talk to claims they are making a fortune due to them not being honest with themselves about the real hours and real costs they have to put in.
        • by AmiMoJo ( 196126 )

          Most Uber drivers are not doing it in their spare time. It's not worth it, the set-up costs like maintaining a decent car, keeping it clean, insurance etc. are too high. I don't know about NYC but many places require them to be licenced or get background checks done too.

          • Citation please? Uber markets themselves as a part time side hustle, a way to make quick cash by driving folks around in your free time, at least around here. Are you saying the average Uber driver in NYC is working full time? You got statistics on this?
    • by bws111 ( 1216812 )

      Yeah, your average Uber driver is going to spend the money on a wheelchair accessible vehicle.

    • Re: (Score:2, Informative)

      by b0s0z0ku ( 752509 )
      More expenses for Uber and drivers = higher costs. This will push some people to either walk a few blocks (OMG, the HORROR) or back into public transit. Higher costs = lower demand, therefore fewer vehicles.
      • Or push them to to drive drunk, thus killing people [miamiherald.com]. But hey, why worry about all those other unintended consequences, right?

        • by Cederic ( 9623 )

          Some fuckwit being too much of a cunt to stay out of the driving seat when drunk is the fault of the fuckwit.

          There are always options. Like not getting drunk. Like not driving. Like walking home, getting a taxi, staying in a hotel or finding a police officer and telling them you want to drive home. They'll look after you.

          Drunk driving is not a consequence of constraining ride sharing businesses.

  • A study shows ... (Score:5, Interesting)

    by WoodstockJeff ( 568111 ) on Wednesday August 08, 2018 @05:02PM (#57093360) Homepage

    ... that studies cause problems.

    Last week we had the story that said Uber was keeping people off the subways.

    Now a new ordinance that blames people's increasing frustration with subway problems with the rise of Uber.

    So it is imperative to force people back onto the subways they're frustrated with...

    THAT will fix it!

    • Re:A study shows ... (Score:5, Informative)

      by originalGMC ( 4046055 ) on Wednesday August 08, 2018 @05:04PM (#57093376)
      Subways in Japan are very nearly perfect, for the modern man. For the future man, who knows? Why would any city try to reinvent the wheel when something so near perfection exists? Emulate!
      • Subways in Japan are very nearly perfect, for the modern man.

        Easy to say until you are pressed against the flesh of your fellow riders on a rush hour train in the middle of a hot humid summer, realizing that the train's air conditioning doesn't really work so great in those conditions. That's if you were lucky enough to get on the train in the first place.

        Japanese trains are great for tourists because tourists have abnormal travel patterns and can avoid rush hour trains.

    • Unless New York subways have gone downhill substantially in the last three years- you've got a system that people would kill to have in many other cities. I wish my town had a system that worked as well as NY's subways.

      • The problem is that the system is neglected and needs a lot of repairs, thus reroutings for construction (especially on nights and weekends) and/or making express trains local is quite common. It works well in Manhattan, since there are a few redundant lines in most areas, less well in the outer boroughs.
      • Unless New York subways have gone downhill substantially in the last three years- you've got a system that people would kill to have in many other cities. I wish my town had a system that worked as well as NY's subways.

        THEY HAVE!!! The MTA is horrible, unreliable and unapologetic. Just last week N, Q, R customers were stranded without warning for an hour despite the maintenance supposedly being 'planned'. MeanwhileCuomo keeps sucking dollars out of transit coffers to do stupid sh*t like spend $30M to add the state colors to the subway tile lining the battery tunnel. I have to pad my commute by at least 45 mins in order to ensure I'm to work on time, and at least once a month I'm still late!!!!

        • This is one more reason to carve the subways and MTA buses out from state control and put them back under city control. There's no reason why a bunch of upstaters in Albany (including "Upstate Andy" Cuomo) need to be running the MTA.
          • Please.

            Next I guess you'll be saying that NYC should be able to deploy as many red-light and speed cameras as required to lower the pedestrian/cyclist death rate.

            Such hubris!

  • by SumDog ( 466607 ) on Wednesday August 08, 2018 @05:04PM (#57093380) Homepage Journal

    New York is one of like 2 to 3 US cities with an actual train system and it's falling apart.

    I'm fine with capping Uber and requiring minimum wage, but for god sake fix Penn Station, dump a shit ton of money into the degrading subway system and invest in that critical infrastructure!

  • by blindseer ( 891256 ) <blindseer.earthlink@net> on Wednesday August 08, 2018 @05:11PM (#57093414)

    ... the more slip between your fingers.

    The city is fighting services that offer a means for people to get where they want to go at a price that they are willing to pay. So, what exactly is the problem?

    I hate the whole concept of a minimum wage. The minimum wage has been and always will be zero dollars. No law will change that.

    Let's say I start a volunteer ferrying service. I post my phone number and website so people can find it, and I say I'll carry you door to door in the city. I offer to carry people in my car for nothing, but if they offer me a "tip" then I'm not going to refuse. If people ask for what kind of "tip" I expect then I'll give a quick estimate of my time, fuel, wear on the vehicle, and some "buffer" above that to make it worth my time.

    I basically just described how Uber and Lyft got started, as ride share programs to reduce congestion and share on the costs of the ride. Both have evolved into a kind of taxi service once people figured out that they could make a small but not insignificant income by volunteering to take people where they wanted to go. It might be below minimum wage if the hours are calculated but then it's better than making nothing at all.

    Go ahead New York, go and regulate these services. All that means is another one will come in to take their place. They might structure their business plan to avoid the rules, or simply ignore them because enforcement is impossible. You want to tell people that they can't drive a friend to the airport? Good luck with that.

    • Re: (Score:2, Informative)

      by b0s0z0ku ( 752509 )

      If they're competing with public transit or walking, they're actually CREATING more congestion. The only time they reduce congestion is if they're competing with private cars, assuming they don't ever drive around empty looking for their next fare.

      I suspect at least some Uber/Lyft trips replace walking or the subway, both of which don't congest the roads.

    • hahaha, good luck with that. offer to carry for nothing and the lowlifes of society will use you and pay you nothing. maybe shitting and pissing in your vehicle or slitting your throat while they're at it.

    • by DRJlaw ( 946416 ) on Wednesday August 08, 2018 @06:19PM (#57093766)

      Go ahead New York, go and regulate these services. All that means is another one will come in to take their place.

      And be identically regulated, because these regulations are not specific to Lyft and Uber.

      They might structure their business plan to avoid the rules, or simply ignore them because enforcement is impossible.

      Enforcement is quite possible. Summon driver through the app. Ticket driver. Enough tickets, impound vehicle. Heck, ticket the service that sent the request to the driver while you're at it. Hard to be anonymous publishing an app. Hard to run a service like this without an app.

      You want to tell people that they can't drive a friend to the airport? Good luck with that.

      Because that is what is happening. I remember just last week when I wrote an app so that my friend could ask me for a ride to the airport... Oh wait... they call or text me, specifically.

      I hate the whole concept of a minimum wage. The minimum wage has been and always will be zero dollars. No law will change that.

      Ah yes, I see. You're a denizen of libertarian fantasyland. I'll be moving on now...

    • Typical demagoguery solution by a leftist mayor. That's all there is to it. Between libertarian imbeciles on the right and corrupt demagogues on the left there is no one left to actually make thoughtful working government regulation that actually works for the common good, not only for corporations or for politicians elected by degenerate voters.

  • Good... (Score:4, Informative)

    by b0s0z0ku ( 752509 ) on Wednesday August 08, 2018 @05:23PM (#57093488)
    If it walks like a taxi, drives like a taxi, and quacks like a taxi, it's basically a taxi and is adding to congestion in the city. Market's saturated -- there's a reason why taxi medallions were limited in quantity by law. NYC streets can't support unlimited traffic. This being said, public transport in the outer boroughs needs to be improved, or some system created to preferentially license rideshares in the outer boroughs (where "real" cabs are hard to get).
  • by SuperKendall ( 25149 ) on Wednesday August 08, 2018 @05:29PM (#57093520)

    I wonder how all of the drivers no longer able to drive because of the car cap will feel about being paid more per hour for driving 0 hours.

    • because they can't do something else for a living where they by law must be paid minimum wage or above?

      • If they had something else to do, they would probably be doing it

    • People argued that in Seattle too, but in the end there were more jobs paying better wages.

      Reality has a bias towards reality, not myth.

      • Wrong as usual (Score:5, Insightful)

        by SuperKendall ( 25149 ) on Wednesday August 08, 2018 @06:25PM (#57093800)

        You are a very confused man, because I am talking about the fact that NYC has specifically eliminated driving jobs, not arguing about the minimum wage per se (though actually you are also wrong there [seattletimes.com]).

        Reality has a bias towards reality, not myth.

        It sure does, which is why I post about reality, not the mythical fairyland your mind inhabits. I mean if you can't even distinguish between an abstract concept like minimum wage and a specific cap on a class of jobs - how can you seriously claim to be grounded in reality?

        I'll let you have the last response as I can only do so much to try and introduce the deluded to reality, and I have given you as much help as is warranted. The rest is up to you, good luck!

  • by Bruce Perens ( 3872 ) <bruce@perens.com> on Wednesday August 08, 2018 @06:41PM (#57093858) Homepage Journal

    The last time I stayed in Manhattan, the Doubletree cost $700/night. The customer paid for that, but it felt wasteful. Since they banned Air B&B and similar, we're not staying in New York city for personal trips. I'd much rather help a local person keep their home than stay in the impersonal people box of some corporation.

    In Manhattan, I'll usually take the subway if it's at all possible. But limiting rideshare in the name of the long-obsolete medallion cab system - which promotes cruising around looking for a customer, using up fuel and making pollution for nothing; that can't be a plus.

    • You (or your customer) got ripped off. You can get under $200/night if you go for a hotel that's not a major chain (but still safe and clean, if not particularly spacious or modern).
      • Yes, I have done the Pensylvania-6-5000 thing before. But not for business. And aren't they owned by some cult?
        • That's one example, there are others. Kayak is your friend here. Also, there's always Yotel if you don't mind the odd hipster capsule hotel vibe.
        • Hotel Pennsylvania isn't owned by a cult, BTW -- it's owned by a real-estate conglomerate that can't decide what to do with it. But for $150/night, you can't beat the location -- near basically every subway like in the city and Penn Station as well.
    • by gravewax ( 4772409 ) on Thursday August 09, 2018 @02:21AM (#57095172)
      Staying there in a few weeks time over the labour day weekend. Have not been to New York in 20 years but even I had no trouble finding 4 star accommodation for under $400 a night and that is during a holiday weekend, let alone something like a doubletree. really sounds like they saw you coming and milked you for all your worth.
  • Uber allows tipping — and there is no limit. Whoever feels the drivers are underpaid can pay them extra. No need to compel the rest of us to do the same, whether we agree with it or not. No one goes to work for Uber against their will, and they are all independent contractors — as, by the way, are the small-time taxi-medallion owners and leasers.

    Unless, of course, this telling others what to do is how you get off — and the reason you went to work for the government...

  • How to implement vehicle cap? Will they request drivers to register, and randomly pick who is allowed to drive a given day?
  • If there's a cap on the number of drivers, then they're going to be more than busy enough for a minimum wage to be irrelevant. Not that a minimum wage for them makes any sense to begin with. Unless you want to encourage people to defraud Uber.

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